What is a guarantee and a letter of intent?
Guarantee is a performance bond securing the claims of a beneficiary if a debtor defaults on his obligation referred to by the guarantee.
Letter of Intent expresses an intention of carrying out a contractual obligation under the agreed terms.
Why do you need guarantees, letters of intent and certificates of the account balance when implementing EU projects?
A guarantee or a binding letter of intent issued by a commercial bank is required as evidence that an entrepreneur secured the financial resources necessary for a successful project implementation.
Instead of the above, it is allowed to attach an already concluded Loan Agreement or a Bank Certificate of the applicant's account balance which will prove that the applicant has sufficient funds for the underlying investment.